A total loss occurs when your car is damaged badly enough in a crash that it would cost more to repair the car than it would to replace it. A total loss also applies if your car is stolen, so long as you have comprehensive coverage.

How do you tell if a car is totaled?

A car is considered totaled when it’s deemed to be a total loss after something unexpected happens. Insurance companies determine a car to be totaled when the vehicle’s cost for repairs plus its salvage value equates to more than the actual cash value of the vehicle.

Do you have to pay gap insurance if your car is totaled?

An insurance company is not obligated to pay off your loan, only to pay you what your car was worth — even if that leaves you thousands of dollars in debt. For that reason, many buyers add gap insurance to their coverage; it will pay off the balance due to the lender if (and only if) the car is totaled.

Can you get a new car if your car is totaled?

Before financing a new car after a total loss, check if you owe a balance on your totaled vehicle. While your insurance company may have issued payment to your lender, the amount may not have been enough to cover the full balance, especially if you don’t have gap insurance.

What’s the difference between Gap and total loss insurance?

Gap insurance is actually an acronym – Guaranteed Auto Protection insurance. But the name ‘gap’ is effective in describing what it’s all about. Essentially, in a total loss car situation, gap insurance covers the gap between how much you owe on your car loan and what your car is worth.

What happens if your car is a total loss?

If your car is totaled, meaning your insurer has declared it a total loss, the vehicle is typically unfixable or would require repairs that exceed the vehicle’s value. Hop in the driver’s seat and buckle up as we explain what it means when your car is totaled, whether your insurer will cover a totaled car and more.